Acceptable COMMUNICATION protocol
Buying and selling real estate is one of the biggest financial investments you will make.
Communication is one of the most important aspects that are involved when Real Estate is bought and sold.
Your realtor has a fiduciary agency relationship with you. Which means that they have very specific duties of care to perform.
Contract law, common law, The CREA code of ethics and the Manitoba Brokers Act must be obeyed precisely and lawfully.
When there is a multiple offer situation a listing agent can only communicate certain information with the buyers and other realtors. There are very specific rules about what can or can not be disclosed.
Everybody who is involved in a multiple offer situation is to be treated the same- and the information that the listing agent gives your realtor is supposed to be exactly the same as the information that is given to every agent.
Here are the rules to help clarify the communication protocol.
1. All information and communication that the listing agents shares with other buyers or selling agents must be precise and accurate.
2. Listing agents must not disclose any of the details written in any offer. This information is private and confidential and can only be shared with the seller at the time of presenting the offers.
3. Any information disclosed when communicating an acceptance, a rejection or a counter offer must take CONTRACT LAW and traditional industry practice into account.
4. There are some limited degrees of pre- qualification and clarification of offers that are allowable
5. These would include the ability of the listing agent to contact the buyer or the agent for clarification about something that has been written in an unclear manner or is in error in the offer to purchase
6. It is OK for the listing agent to enquire whether the buyer is flexible on a particular term. Like a possession date, or an increase in the amount of the deposit
7. Any other variation will make the listing agent subject to discipline
8. The listing agent-acting on a seller’s instruction may only accept, reject or counter an offer. This should be done in writing
9. If a listing agent needs clarification as noted above they must be precise in noting that they are not communicating a counter offer but merely seeking more information at this time.
10. The LA must communicate with ALL buyers or their agents to advise them whether their offer has been rejected or accepted or countered.
11. If a seller wishes to be more specific about what terms they are prepared to accept it can only be done by way of a properly executed and written counter- offer.
DISCLOSURE BY IMPLICATION
Here are some examples of unacceptable communication. If a realtor is not careful to follow the protocol for the standards of acceptable communication as outlined above they are subject to an industry hearing which could result in disciplinary action –accompanied with a fine, or a suspension or loss of their Real Estate license.
Your offer is within $xxx of the best offer
Your offer is identical to another offer
If you increase your offer by $xxx the house will be yours
There are xxx number of offers within a range of $xxx
Your offer is second in price
We trust that the information in the Videos about the many aspects involved in the buying and selling of Real Estate is helpful and informative. If you need any further clarification or have other questions we invite you to e-mail or give us a call. We would be happy to help you because.
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